The Sweet Spot is all about finding renovation and development opportunities in San Francisco. We are your eyes and ears to best flippin’ deals in town. If you are looking to create some “sweat equity” in real estate, this is the place to find it. Not finding what you want? Call us and we will be on the hunt for your very own little Sweet Spot!
Suzanne Gregg, Paragon Real Estate Group 415.816.9133
Beautiful 5 Unit building with huge vacant 3br/2ba owner’s unit, views, $7,730/ mo. rental income, and parking listed for $2,495,000
Three units in prime Noe Valley with views – delivered vacant at close of escrow. Listed for $1,198,000.
Three big flats, 4 car parking, great neighborhood, two spacious owner’s units delivered vacant at close of escrow. Listed for $1,399,000.
2 Br/1 Ba with formal dining room, sun room, hardwood floors, fireplace, and 2 car garage $599,000
2 Br/1 Ba with formal dining room, big lot, and 2 car parking $589,500
2 Br/ 1 Ba with garage and large, flat garden $599,000
Sorry, this is a poor picture….but a great little deal! 4 Unit apartment building, 4 car garage, and center patio with two delivered vacant - across the street from the beach. Listed for $958,000 ($239,500 per unit!). You can get a conforming loan on this one with great terms….
Would not take too much to restore this to its original beauty – 2000 Sq. ft 3 Br with big garage and huge attic space $899,000
A great way to buy and finance renovation opportunities with 3.5% down on house and renovation costs….
FHA 203(k) Calculations
Example:
Purchase Price ($500,000) + Renovation cost ($100,000) = Total ($600,000)
Regular / Streamline FHA 203(k) Comparison
|
Factor |
Regular 203(k) |
Streamline 203(k) |
|
Repair Costs
|
Minimum repair cost threshold is $5,000
Maximum loan amount is the lesser of the:
Applicable LTV limit |
No minimum repair cost threshold
Maximum loan amount is the lesser of the:
Maximum total financed rehabs cannot exceed $35,000 (repair cost plus contingency) |
|
Eligible Repairs
|
Major rehabilitation or major remodeling
additions to existing construction, repair of structural damage, repairs requiring Architectural drawings or examples. For a complete list see the Government Technical manual. |
Intended for uncomplicated rehabilitation and /or improvements to a home for which plans, consultants, engineers and/or Architects are not required. For a complete list see the Government Technical manual. |
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Ineligible Repairs
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Luxury items and improvements that do not become a permanent part of the real property are not eligible
Repairs that will take longer than 6 months or cannot start within 30 days of closing. |
Repairs that require a or architectural exhibits. Repairs that will take longer than6 months or cannot start within 30 days of closing. Repairs that require the customer to be displaced from the property for more than 30 days. |
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Draws
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A maximum of five draws is allowed (four intermediate and one final). The borrower can only request reimbursement for work included in cost of rehab and completed per the draw request. An inspection is required prior to each draw. Draw requests must be approved by the inspector, contractor, and customer. There is a 10% holdback on each draw which will be paid after the final inspection. | A maximum of two draws is allowed. 50% of the rehab amount may be disbursed at the discretion of the lender prior to beginning construction to defray materials costs. The second and final draw will be made upon completion of work. |
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Contingency Reserve
|
The cost estimate must include a contingency reserve of a minimum of 10% of the cost of rehabilitation, but if the utilities were not turned on for the inspection, a minimum of 15% is required. The contingency reserve may not exceed 20%. | Not mandated per the Streamlined 203 (k)
program, however a contingency reserve account may be set up for administering the loan at the lender’s discretion. |
|
Inspections
|
For each draw request, the property must be inspected by an FHA approved consultant selected from the roster to assure the percentage of work completed matches the percentage of funds requested. | CMD policy requires one final inspection
prior to the disbursement of remaining funds be completed on all Streamline 203(k) loans. |
|
Lender Fees |
Supplemental origination fee, discount on loan and discount on rehab costs may be charged. | Supplemental origination fee, discount on loan and discount on rehab costs may be charged. |
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Other Fees
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Independent consultant fees, architectural and engineering fees, plan review fees (if applicable), inspection fees, building and other permits, title update costs and the amount of any contingency reserve required by the lender. | Inspection fees, building and other permits, title update costs and the amount of any contingency reserve required by the lender. Architectural, plan reviewer and consultant fees are not applicable. |
|
Combine with Energy Efficient Mortgage (EEM) |
EEM can be added to the 203(k) maximum mortgage amount and may exceed the statutory limit. However, it may not exceed 110% of the as-improved value. See the Government Technical manual for more information. | EEM may be used in conjunction with the
Streamlined 203(k) program. The amounts permissible under the EEM program are in addition to amounts available under Streamlined 203(k) in which case repair cost may exceed the $35,000 limit. |
2Br Victorian in Upper Market $849,000
3Br two level home in Twin Peaks with terrific views $875,000
Another 3Br Twin Peaks home with dramatic views $875,000
2Br Noe Valley cottage $675,000
Two units on oversized lot in Glen Park $798,000
3 Br Bungalow in Bernal $449,000
Fully detached 2 BR in Bernal $785,000
2Br Edwardian in Upper Market $899,000
Move right in, or do a little fixin’, just to make this darling house your own. 2Br/1Ba, 2 car garage, and large well taken care of garden $679,000
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